Question
A property is purchased for $5,000,000 plus $100,000 in closing costs and a rehab/capital improvement budget of $1,000,000. The NOI at time of purchase is
A property is purchased for $5,000,000 plus $100,000 in closing costs and a rehab/capital improvement budget of $1,000,000. The NOI at time of purchase is $200,000, $350,000 in year 2 and $450,000 in year 3. Annual Average TI/LC costs for years 2 & 3 is $125,000 per year. The sales price in year 3 is a cap rate of 6%. The IRR is (nearest tenths):
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Public Finance A Contemporary Application Of Theory To Policy
Authors: David N Hyman
12th Edition
0357442156, 978-0357442159
